Actually, you are talking about the Fed forgiving $8T in debt. But the USA has $34.6T in total debt outstanding, right? So, still $26.6T to continue rolling over. What's the "right" amount of debt for the USA to have?
Good article. I'll point out that politicians are profligate spenders only because voters elect them to do that. Everybody likes free stuff. Nobody likes taxes.
Yes - indeed. I have had comments saying this would be inflationary because the $8T of cash that would otherwise be sucked out of the economy by the Treasury repaying the debt, would stay in the economy.
I am not so sure. The money is already there. It would phase in over the staggered maturities.
I don’t think it would be a good thing because of the signal it would send but I don’t see another way, absent an energy productivity miracle or inflating the debt away, which has other problems.
Actually, you are talking about the Fed forgiving $8T in debt. But the USA has $34.6T in total debt outstanding, right? So, still $26.6T to continue rolling over. What's the "right" amount of debt for the USA to have?
Maybe 70% of GDP, so $20T should be more manageable
Good article. I'll point out that politicians are profligate spenders only because voters elect them to do that. Everybody likes free stuff. Nobody likes taxes.
Yes - indeed. I have had comments saying this would be inflationary because the $8T of cash that would otherwise be sucked out of the economy by the Treasury repaying the debt, would stay in the economy.
I am not so sure. The money is already there. It would phase in over the staggered maturities.
I don’t think it would be a good thing because of the signal it would send but I don’t see another way, absent an energy productivity miracle or inflating the debt away, which has other problems.